Appraisal Tips for Success

Before banks or lending institutions can consider loaning money for a property, they need to know the current market value of that property. An appraiser’s job is to check the general condition of your home and determine a comparable market value based on other homes in your area. This is required for any buy or sell situation.

To help make the appraisal as smooth as possible and ensure you are getting top market value, check out the tips below:

1. Clean Up: The appraiser is basing the value of your property on how good it looks. A good rule of thumb is to treat the appraisal like an open house! Stage it as you would a home for sale, clean and declutter every room, vacuum, and scrub – even consider adding a fresh coat of paint – to ensure your home is as presentable and appealing as possible. Where applicable, remove personal stigma items such as alcohol or drug paraphernalia, controversial pictures or flags, etc.
2. Curb Appeal: First impressions can significantly impact an appraisal. Spending time ensuring the outside of your property, from your driveway entrance to the front step, is clean and welcoming can make a difference. Cut grass, water plants, add flowers or hanging baskets to make things feel inviting, and stage the yard with some lawn furniture to make it look like its own space.
3. Visibility: The appraiser must be able to see every homeroom, with no exceptions. YES, every room, including outbuildings, garage, closets, basement… Refusal to allow an appraiser to see any room can cause issues and potentially kill your deal. If there are any issues with any spaces in your home, be sure to take care of them in advance to allow the appraiser full access. NOTE: If tenants are in your home, ensure you give them the appropriate amount of notice for access. YES, every room, outbuilding, closet, and garage needs access. Otherwise, the appraiser will have to return it at added expense to you.
4. Upgrades and Features: Ensuring the appraiser knows any upgrades and features can go a long way. Could you make a list and include everything from plumbing and electrical to new floors, new appliances, etc? This way, they have a reference for what has been updated and how recent or professional that work was done. Knowing the age of the roof and HVAC items like the water tank is essential. Also, please ensure the breaker box is MIN 100amps, as most lenders cannot finance a home with amps under 100; older homes from the 1930 area are generally only 60amps. The same goes for knob and tube versus breaker setups. Upgrading is essential and will add value.
5. Be Prudent About Upgrades: While the bathroom and kitchen are widespread, there are better options than the be-all-all for getting a higher home value. These renovations can be costly, so it is a good idea to be prudent about how you spend your money. Instead, focus on easy changes such as new paint, new light fixtures or plumbing, and updated flooring to avoid breaking the bank while keeping your home fresh. Removing clutter, adding a new coat of paint, and deep cleaning will help shine these spaces.
6. Know Your Neighbourhood: You already know where you live better than the appraiser. Looking at similar homes in your neighborhood and noting what they sold for will give you a ballpark. If your appraisal comes in low, you will be prepared to discuss the examples from your area with the appraiser and why you believe your property is worth more. In addition, keep in mind that appraisal values are based on recent sales data; if there have been zero sales in the area recently and time allows it, hold off on getting an appraisal done until some deals have been evident to ensure you’re getting the most value.
7. Be Polite: The appraiser is there to get in and out, so let them run the house while they are there. Do not follow them around, avoid asking them too many questions or making too many comments, and be prepared should they have questions. Once they have completed the review of your home, that is an excellent time to bring up any comments you might have. Just to remind you, the onsite inspection is usually only 15 minutes through the house. Still, typically, the bulk of work for appraisals is at the desk, reviewing sales and other forms of research to create the appraisal report.
8. Know The Costs: Every appraiser charges differently. If the lender allows for ordering appraisals directly, I can shop around and fetch you the best price.

Don’t forget to contact me if you have any questions about your existing home or mortgage or want to sell and relocate!